varo
Vero Energy Inc. Announces Third Quarter 2011 Financial and Operating Results 11/14 07:00 AM
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CALGARY, Nov. 14, 2011 /CNW/ - Vero Energy Inc. (VREYF:$2.8100,$0.0000,0.00%) ("Vero" or the "Company") announces its financial and operating results for the third quarter of 2011.
Third Quarter 2011 Highlights
Daily volumes increased 11% to 9,262 boe/d over 8,335 boe/d from the third quarter of 2010.
Achieved funds flow from operations of $15.1 million, equating to $0.31 per share (basic and diluted).
Increased oil production by 110% to 1,339 bbls/d from 639 bbl/d in the same quarter of 2010.
Production revenue increased by 29% in the third quarter to $31.4 million from the same quarter in 2010.
Achieved an operating netback of $21.43 per boe and funds flow netback of $17.71 per boe representing a 12% and 13% increase respectively, in the third quarter of 2011 versus 2010.
Drilled 7 (5.7 net) horizontal wells with a 100% success rate. Of the seven wells, 5 (4.1 net) targeted Cardium oil.
Fourth Quarter 2011 Update
Current production based on field estimates is approximately 9,600 boe/d (75% natural gas).
Drilled and completed 2 (1.7 net) Notikewin wells which are on production and drilled 2 (0.7 net) Cardium wells which will be completed shortly and expected to be on production in early December.
varo
Re: varo
Vero Energy (VRO.TO) 3rd quarter production was slightly below my forecast on a boe basis, however with more liquids their revenues came in higher than my forecast. They are on-track to generate over $1.20 cash flow per share this year and it could push over $2/share next year. This is one very cheap stock! - Dan
As a percentage of corporate production, liquids (oil and natural gas liquids) accounted for 24% of total production in the third quarter of 2011. Given the strong prices realized for Vero's oil and high quality NGL production, aggregate liquids revenue accounted for approximately 51% of total revenue during the third quarter. Total production increased by 11% over the third quarter of 2010 to average 9,262 boe/d. For the year to date daily production was 9% higher at 9,344 boe/d from 8,583 in 2010. The increase in aggregate production levels accompanied by the increased contribution from the higher priced liquids production, delivered funds flow for the third quarter of $15.1 million. This translated into $0.31 per share on both a basic and diluted per share basis.
I will have an updated forecast up on the website (Watch List Tab) within the hour.
As a percentage of corporate production, liquids (oil and natural gas liquids) accounted for 24% of total production in the third quarter of 2011. Given the strong prices realized for Vero's oil and high quality NGL production, aggregate liquids revenue accounted for approximately 51% of total revenue during the third quarter. Total production increased by 11% over the third quarter of 2010 to average 9,262 boe/d. For the year to date daily production was 9% higher at 9,344 boe/d from 8,583 in 2010. The increase in aggregate production levels accompanied by the increased contribution from the higher priced liquids production, delivered funds flow for the third quarter of $15.1 million. This translated into $0.31 per share on both a basic and diluted per share basis.
I will have an updated forecast up on the website (Watch List Tab) within the hour.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: varo
Vero Energy Swings Back to Q3 Profit But 2-Cent EPS Not Enough to Meet 6-Cent Street Call 11/14 02:02 PM
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03:02 PM EST, 11/14/2011 (MidnightTrader) -- Vero Energy Inc. (VREYF:$2.3964,$-0.4136,-14.72%) returned to profitablility in Q3, reporting $859,000 in net income on $31.3 million in reveneus, but it still wasn't enough to match Street expectations or keep Vero shares in positive territory today.
Analysts, on average, were expecting the oil and gas company to generate earning of 6 cents per share. The $859,000 profit translated into a 2-cent EPS.
Price: 2.40, Change: -0.44, Percent Change: -15.5
http://www.midnighttrader.com
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03:02 PM EST, 11/14/2011 (MidnightTrader) -- Vero Energy Inc. (VREYF:$2.3964,$-0.4136,-14.72%) returned to profitablility in Q3, reporting $859,000 in net income on $31.3 million in reveneus, but it still wasn't enough to match Street expectations or keep Vero shares in positive territory today.
Analysts, on average, were expecting the oil and gas company to generate earning of 6 cents per share. The $859,000 profit translated into a 2-cent EPS.
Price: 2.40, Change: -0.44, Percent Change: -15.5
http://www.midnighttrader.com
Re: varo
CIBC on VERO:
Vero Energy Inc.
Q3/11 Below Expectations; Downward Revision To Guidance
Ticker: VRO-TSX
Stock Rating: Sector Performer
Price (11/14/2011): $2.84
Vero Energy (VRO-SP) reported Q3/11 results that were below expectations.
Production was 9,262 Boe/d (76% gas), which was lower than our 10,410
Boe/d estimate. The production miss was attributed to field delays,
turnarounds and one Notikewin well experiencing drilling difficulties (that has
not yet been tied in). Operating costs were $8.58/Boe, in line with our
$8.50/Boe estimate, but royalty costs, at $5.45/Boe, were higher than our
estimate of $4.16/Boe due to new wells with gross overriding royalties and
certain wells exceeding their 5% new well royalty rate. As a result, cash flow
per share was $0.31, below our estimate of $0.39 and Street consensus of
$0.38.
Due to higher services costs coupled with lower gas prices, Vero has decided
to focus on Cardium oil drilling for the remainder of the year. With this focus
on lower relative oil volumes, as well as lower-than-expected current
production of 9,600 Boe/d, 2011 production guidance has been revised
downward to 9,200 Boe/d-9,400 Boe/d (from 10,000 Boe/d-10,500 Boe/d
previously). 2011 capex is expected to be $120MM-$125 MM (up from
$100MM previously).
In Q3, Vero spent $32.2MM, drilling seven (5.7 net) horizontal wells: five (4.1
net) were Cardium oil wells, one (0.6 net) was a Wilrich gas well and one
(0.97 net) was a Notikewin well. Currently, one Cardium and two Notikewin
gas wells are drilling. As indicated, no additional gas locations are expected to
be drilled in Q4/11; four (2.7 net) further Cardium oil wells are planned, with
potentially 0.7-1.0 net non-operated Cardium wells.
At this time, Vero has no plans to spend capital in 2012 in its 50 net sections
of prospective Duvernay lands. Vero will release next year's guidance in early
2012.
Vero Energy Inc.
Q3/11 Below Expectations; Downward Revision To Guidance
Ticker: VRO-TSX
Stock Rating: Sector Performer
Price (11/14/2011): $2.84
Vero Energy (VRO-SP) reported Q3/11 results that were below expectations.
Production was 9,262 Boe/d (76% gas), which was lower than our 10,410
Boe/d estimate. The production miss was attributed to field delays,
turnarounds and one Notikewin well experiencing drilling difficulties (that has
not yet been tied in). Operating costs were $8.58/Boe, in line with our
$8.50/Boe estimate, but royalty costs, at $5.45/Boe, were higher than our
estimate of $4.16/Boe due to new wells with gross overriding royalties and
certain wells exceeding their 5% new well royalty rate. As a result, cash flow
per share was $0.31, below our estimate of $0.39 and Street consensus of
$0.38.
Due to higher services costs coupled with lower gas prices, Vero has decided
to focus on Cardium oil drilling for the remainder of the year. With this focus
on lower relative oil volumes, as well as lower-than-expected current
production of 9,600 Boe/d, 2011 production guidance has been revised
downward to 9,200 Boe/d-9,400 Boe/d (from 10,000 Boe/d-10,500 Boe/d
previously). 2011 capex is expected to be $120MM-$125 MM (up from
$100MM previously).
In Q3, Vero spent $32.2MM, drilling seven (5.7 net) horizontal wells: five (4.1
net) were Cardium oil wells, one (0.6 net) was a Wilrich gas well and one
(0.97 net) was a Notikewin well. Currently, one Cardium and two Notikewin
gas wells are drilling. As indicated, no additional gas locations are expected to
be drilled in Q4/11; four (2.7 net) further Cardium oil wells are planned, with
potentially 0.7-1.0 net non-operated Cardium wells.
At this time, Vero has no plans to spend capital in 2012 in its 50 net sections
of prospective Duvernay lands. Vero will release next year's guidance in early
2012.
Re: Vero
Dan,
On the Vero update on the watch list I noticed the value of the company was reduced from $9. to $7.5. Would you please comment on the cause of this revision. At $2.5 the stock looks very cheap but it appears they are spending more capital to get less production than anticipated? Thank you
On the Vero update on the watch list I noticed the value of the company was reduced from $9. to $7.5. Would you please comment on the cause of this revision. At $2.5 the stock looks very cheap but it appears they are spending more capital to get less production than anticipated? Thank you